Family Member Never Paid Back Loan

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Three years ago, you lent your brother-in-law $5,000 (without interest) to start a business, and now the company's thriving. The problem: He promised to start paying you back two years ago -- and you've yet to see a dime! Now, you really need the money. What should you do?

1) Call your brother-in-law, politely ask for the money and work out a payback schedule.
2) Say nothing.
3) Ask your mother-in-law for the money that he owes you.

The correct answer: (1) You or your husband should approach your brother-in-law -- but it may be easier for your husband, since it's his brother -- and tactfully explain that you need to discuss repayment terms for his loan. There's no need to mention your current financial needs. Hopefully, he'll honor the debt and pay you back. The key: Keep the conversation civil and avoid getting confrontational. Unfortunately, short of taking legal action, there's no guarantee you'll get your money. This is the risk of lending to family.